One reason is the astonishing depth of California's real estate slump. Though the market is starting to improve, it's done so much damage to construction, consumer spending and other key sectors that recovery will come slowly.

Another reason is the huge drop-off in international trade, which is punishing California's ports. And, for good measure, the state's worst-in-the-nation budget problems will prolong the recession here.

"In California right now, it's really hard to see any areas of strength," said Sung Won Sohn, an economist at California State University's Channel Islands campus. "It's hard to be optimistic."

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